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Foreign Direct Investment and the Multinational Enterprise$
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Steven Brakman and Harry Garretsen

Print publication date: 2008

Print ISBN-13: 9780262026451

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262026451.001.0001

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PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 02 August 2021

Is It Strategic to Attract the Service Activities of Multinational Firms? Some Empirical Evidence

Is It Strategic to Attract the Service Activities of Multinational Firms? Some Empirical Evidence

Chapter:
(p.259) 11 Is It Strategic to Attract the Service Activities of Multinational Firms? Some Empirical Evidence
Source:
Foreign Direct Investment and the Multinational Enterprise
Author(s):

Fabrice Defever

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262026451.003.0011

In this chapter, preproduction and postproduction service activities are studied using a set of data of almost 11,000 location choices, collected by consulting group Ernst & Young. Through the provided information, a rough estimate of the number of jobs multinational firms have created is made in order to stress how the terms of the job are important in western European countries. An econometric model is used to explain the data, how dependent and independent variables affect it, and what results can be concluded from the study. The policy implications arrived at by this study is as follows: first, it shows the importance of a firm’s investment and job creation in service activities. Next, service activities and not financial incentives are shown to require more attention, specifically in modern service economies. Finally, it is also perceived that the data set is limited due to the time range it employs, and so the study seems more applicable to firms expanding locations in Europe.

Keywords:   service activities, job creation, financial incentives, modern service economies, econometric model, Ernst & Young

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